Fendi to scoop up 51% stake in Fun Fashion

NEW DELHI: Fendi, the luxury fashion brand from the Louis Vuitton Moet Hennessy (LVMH) stable is entering India. This should be one of the first few FDI proposals to be considered in the Indian retail sector after the government approved 51% FDI in single brand retail trade.

Recently, Moja Shoes, a franchisee of Nike, was also allowed to bring in FDI into the company, under the same rule.

Fendi, the Italian fashion major, famous for its fashion and leather goods, would be acquring 51% stake in little known Fun Fashion (FFI), a Mumbai-based company. According to sources, FFI will operate as a joint venture company between Chordia Fashion, promoters of FFI, and Fendi. Fendi plans to invest E5m over a period of five years.

When contacted by ET, the Indian advisors to Fendi said, “We are awaiting a decision from the Foreign Investment Promotion Board (FIPB) as the application is still in process. When we get an approval, other formalities such as import-export certificate and VAT registration will have to be taken care of before we start Fendi’s operations here.”

According to sources, initially, FFI would distribute the Fendi range of products through a store in Mumbai. The product categories would include ready to wear, bags, accessories, watches, jewellery and shoes. The products being distributed by FFI, would follow the FDI norms and therefore, be under a ‘single brand’ name, which are registered trademarks of the fashion label.

Talking about luxury brand retailing, Vivek Kaul, associate director and head-retail & leisure advisory, Jones Lang Lasalle said, “Luxury brands are looking at five star hotels and luxury retail destinations such as Emporio in Mumbai and Fendi would be no different.”

In the long term, the fashion brand hopes to expand its presence in India from Mumbai to other cities.